Development value spikes can influence home insurance protection – Lincoln County File

CARSON CITY – With the risk of wildfires rising in Nevada and rising construction costs across the country, it is important that consumers review and understand the nature of their home insurance so they know how their insurance company will pay for a loss in the event of a claim, according to the Nevada Division of Insurance.

"Consumers should consider how the rise in building materials and construction costs, which have increased significantly over the past year, is affecting their home insurance," said Insurance Commissioner Barbara Richardson. “Household insurance pays the cost of rebuilding or repairing a building. With the prices of materials such as lumber and steel soaring, consumers are encouraged to meet with their insurance agent or insurance company to make any adjustments necessary to ensure that their assets are adequately protected and that rising construction costs have not underinsured them. "

Consumers are encouraged to be proactive and take the following steps:

Ask a licensed insurance professional whether the coverage includes replacement cost or actual cash value. These two covers are not the same. The replacement cost is the amount that would be required to replace or remodel a home, or to repair damage with materials of a similar nature and quality, without deducting any depreciation. Actual cash value is the amount that would be required to repair or replace damage to a home after it was depreciated. Depreciation is the decrease in value of the home or property since the time it was built or purchased due to age or wear and tear.

With construction costs soaring, make sure your home is not underinsured. Ask an insurance professional if the policy limits are enough to completely replace the house in the event of a total write-off. It is recommended that you periodically review your policies and make any updates that are appropriate for your situation.

Save money by asking a licensed insurance professional about insurance discounts. Consumers are also encouraged to take advantage of the competitive home insurance market in Nevada and examine their options by shopping with insurance companies.

Finally, consumers living in fire-prone areas are encouraged to take measures to contain their property, e.g. For these and other helpful tips, consumers are encouraged to visit the Division's website, where they can also read the Division's Home Insurance Guide at

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